Question
assume the following: 1. Cost of goods sold is the variable cost. 2. General, selling, marketing, and administrative expenses are the fixed cost 3. Omit
assume the following:
1. Cost of goods sold is the variable cost.
2. General, selling, marketing, and administrative expenses are the fixed cost
3. Omit any other revenue and expenses such as interest revenue, dividends revenue, gains or losses, and extraordinary gains or losses.
Using Excel,
a. compute the following for the selected company for two years:
1. Contribution Margin
2. Contribution Margin Ratio
3. Break-Even Revenue
4. Margin of Safety
5. Margin of Safety Percentage
6. Degree of Operating Leverage
b. Write a short report (maximum 500 words) containing a performance evaluation of this company.
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